Income Tax (Trading and Other Income) Act 2005 section 680B

Income treated as savings income

Section 680B determines when estate income received by a beneficiary from the residue of an estate is treated as savings income for income tax purposes.

• This section applies to estate income arising from a person's interest in the residue (remaining balance) of a deceased person's estate.
• The income must relate to amounts that form part of the aggregate income of the estate as charged to UK income tax in the hands of the personal representatives.
• The underlying income must itself be savings income, as defined in section 18 of the Income Tax Act 2007 — broadly, interest and similar investment returns.
• Where both conditions are met, the estate income received by the beneficiary is treated as savings income, preserving its character as it passes through the estate to the beneficiary.